Broker tips: Premier Oil, Boohoo.com

Analysts at RBC downgraded their recommendation on shares of Premier Oil from 'outperform' to 'sector perform' after the shares had reached their 100p target price, which was unchanged.

That target, they explained, was premised on a 2018 price for Brent oil of $59 a barrel, rising to $60 in 2019, which was $10 a barrel below then current prices.

Hence, should oil prices remain at $70 out to 2019, their decision to downgrade might turn out to be mistake.

Under such a scenario, their estimate of the company's fully diluted tangible net asset value, excluding Sea Lion, would rise from 106p a share to 138p.

Indeed, Premier's free cash flow would almost double to roughly $380m, allowing it to again meet its temporarily loosened debt covenants by a comfortable margin.

In the wake of a 30% drop in the shares over the past seven months, Citi opted to upgrade its recommendation on shares of Boohoo.com to 'buy', setting a target price of 235p.

"We think shares and consensus forecasts now better reflect downside risk on margins as company invests for long term growth. Social media shows potential of boohoo brands," the broker said to clients in a research note.

To back up its case, the broker pointed to rival PrettyLittleThing, which had more than twice the engagement of 'Asos' or Boohoo brands.

In its opinion, that served to underline that sales had yet to scale to potential and underpinned its near-term growth forecasts.